Amid the global debate over the potential of artificial intelligence and its commercial applications, many senior managers worry that too much reliance on automation is undermining the customer experience and, by extension, respect for a brand. But there is evidence they may be unduly concerned – in many cases artificial intelligence is already improving customer experience and can give businesses an edge in enhancing brand loyalty.
AI is already at work in many areas, for instance giving platforms such as Amazon or Netflix an ever-improving understanding of their customers’ tastes and preferences thanks to the ability to process huge volumes of data and make judgements based on probabilities in what is perhaps the most immediate advantage offered by the technology.
Any business that needs to equip employees with better insights into tasks and markets will undoubtedly see benefits.
In a global survey of more than 3,000 executives in 112 countries by Boston Consulting Group and the MIT Sloan Management ReviewOpens a new window in September 2017, more than 80% of respondents said they expected the introduction of artificial intelligence into their business to create some form of competitive advantage or help them sustain an existing edge. It paints a picture of a business community motivated by a sense of opportunity rather than fear of artificial intelligence.
Strengthening Customer Loyalty
For businesses or organisations that routinely process large amounts of customer data, AI can offer a range of advantages: providing sales teams with a better understanding of their clients, processing financial information more efficiently or making sense of patient data for insurance companies or physicians.
According to a report by Salesforce, The State of the Connected CustomerOpens a new window , technology is putting consumers in the driving seat more than ever, with 57% of 7,000-plus respondents agreeing it is important that the companies with which they interact are innovative.
In the digital age, it quickly becomes obvious when businesses lag behind their peers. Half the respondents say they would switch brands if they felt under-appreciated – increasing the importance of being able to anticipate and fulfil their needs without having to be asked. Salesforce says this trend is even more pronounced among business customers, of whom 64% are liable to switch.
While technology may make it easier for customers to take their business elsewhere, it also makes it easier to get to know them and to provide a more personalized experience. It can create the sense that they are being looked after and that their needs are understood by providers.
In the realm of the Internet of Things, where household and personal devices are increasingly connected and apps becoming a critical interface between businesses and consumers, automation will be needed to create the personalized experience using the data that customers make available.
The Evolution of Chatbots
AI also has become ubiquitous through the use of chatbots, although these are just the start of a customer journey that is about to become much more sophisticated. Traditional chatbots, which already draw on artificial intelligence to power their interaction with human beings, are set to evolve into multi-dimensional communication systems, perhaps incorporating sensory abilities. Personalizing the communications experience gives users the impression that they are interacting with a human being.
Is investment in AI required to continue to compete in terms of marketing and brand management? According to a report last year by Deloitte DigitalOpens a new window , most chief marketing officers believe so.
The advertising market will become more heavily influenced by artificial intelligence. Harvesting data from systems such as chatbots will enable advertisers to target their communications far more efficiently than in the past, eventually to the point where advertising is personalized for each individual. This has already begun with geographical targeting using IP addresses, or where data collected by Google search activity can provide a highly accurate picture of likely consumer behavior.
Companies aiming to manage and project their brands more effectively in the coming years must start thinking hard about the ways artificial intelligence can help to provide customers with the enhanced quality of experience they are already coming to expect.